Cardano's founder Charles Hoskinson took to Twitter on March 15 to advocate for ditching banks amid ongoing crises. Hoskinson said that crypto needs to de-risk itself from unstable and volatile banks.
The tweet came just days after the closure of Signature Bank by regulators, which effectively shut off one of the last easy options for crypto firms to stay connected to the traditional finance system.
The failures of banks that catered to digital assets firms have important implications for the crypto industry, stablecoins, and the token market.
Although supporters of the digital assets industry predict that it will eventually replace traditional banks, the industry is currently facing challenges when it comes to re-establishing its connection with the banking system. Numerous crypto companies are reporting that it has become increasingly difficult to find banks that are willing to offer even the most mundane services.In response to a Twitter user who suggested the need for a decentralized crypto bank, Hoskinson said that it would be "game over" for traditional banking institutions if it was possible to digitalize treasuries.
His statement highlights the potential for cryptocurrencies to disrupt traditional finance systems and create new decentralized alternatives.
The closure of banks that cater to cryptocurrency is a sign of increased regulatory scrutiny and the ongoing tension between traditional finance and the emerging crypto industry.
Despite these challenges, the crypto industry continues to grow and evolve, with new projects and initiatives emerging every day.
Hoskinson's tweet advocating for ditching banks highlights the potential for cryptocurrencies to create new decentralized alternatives to traditional finance systems.
As the industry continues to mature, it remains to be seen how it navigates the regulatory landscape and builds new decentralized financial systems.